New Businesses Are Your Best Clients: Why Every Broker Should Track LLC Formations

Every day, thousands of new businesses take their first steps across the United States. Behind each filing—an LLC, corporation, or partnership—is a founder making critical decisions about banking, accounting, payroll, and insurance.

For brokers, these “day-zero” businesses represent one of the most motivated and receptive buyer segments in the market. They’re not only required to obtain certain types of insurance—such as general liability, workers’ compensation, or property coverage—but they’re also actively looking for guidance.

The real challenge isn’t whether these clients will buy insurance. It’s who reaches them first.

The Untapped Opportunity in Newly Formed Businesses

When it comes to new business clients, speed equals success. Traditional prospecting often relies on outdated lists or slow-moving referrals. By the time a producer reaches out, competitors may have already secured the account.

Tracking LLC formations enables brokers to identify and contact new entities within days of registration. This early access creates a decisive advantage, transforming your outreach from reactive to proactive.

Day-Zero Clients Are:

• Highly Receptive: Founders are making essential buying decisions and are open to trusted guidance.
• Sticky: Early relationships often lead to long-term renewals and bundled policies.
• Diverse: From contractors to consultants, each new business has a unique coverage need.

When you engage them at the right moment—with relevant, empathetic advice—you don’t just win a policy. You build a relationship that can last years.

The Market Landscape: A Surge of New Business Activity

Tracking the formation of businesses works. Here’s why:

Business Formation Is Rising

According to the U.S. Census Bureau’s Business Formation Statistics, there were approximately 473,679 new business applications filed in August 2025, continuing a steady upward trend since 2020.

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While the pandemic initially disrupted traditional business models, it also sparked a wave of entrepreneurship. New ventures ranging rom independent contractors to digitally native startups are redefining the small business economy.

More Employer Businesses Are Emerging

Not all business applications translate into operational companies, but the data shows growing momentum in “high-propensity” applications—the type of businesses to most likely to hire employees and need comprehensive coverage.

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According to Census data, high-propensity applications account for roughly one-third of total business formations, with many concentrated in industries like construction, professional services, and retail. In these sectors, insurance is a non-negotiable.

Insurance Demand Is Expanding Alongside Growth

The global small business insurance market is projected to grow at a compound annual growth rate (CAGR) of 4.2% between 2025 and 2033, according to a recent report from Cognitive Market Research.

Three main factors are fueling growth:

• Rising small business creation rates
• Increased regulatory compliance needs
• A growing awareness of risk exposure, especially among digital and gig-economy businesses
  
  

Brokers have access to a larger and more varied pool of clients, each with distinct needs and a strong desire for expert advice.

Industry-Specific Surges Create Targeted Opportunities

Specific sectors are leading the charge in business formation growth. According to the U.S. Census Bureau, industries such as management services, retail trade, and food services have seen particularly sharp increases in new filings since 2019.

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The opportunity is not just large—it’s targetable. By filtering LLC formations by industry code (NAICS), brokers can prioritize outreach to sectors where coverage is most urgent.

Why Traditional Lead Sources Fall Short

Most brokers have relied for years on third-party lead lists, trade directories, or local business networks. While these can generate occasional wins, they often share the same fatal flaw: they’re outdated.

Common Problems with Traditional Lists

• Lag Time: Many lists are 30 to 90 days old by the time they reach producers.
• Inaccuracy: Contact data may be incomplete or outdated.
• Low Conversion Rates: Many “leads” never became active businesses.
• Wasted Effort: Producers spend valuable time chasing cold or inactive names.

This lag not only leads to lost deals—it erodes morale. The best producers want to spend their time selling, not sifting through bad data.

How Real-Time Business Formation Data Changes the Game

Livesight was built to solve exactly this problem. By aggregating Secretary of State filings from all 50 states, Livesight delivers fresh, verified data on newly registered businesses—often within days of their official formation.

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This gives brokers the earliest possible signal that a business is real, active, and making critical buying decisions.

What Makes Livesight Data Different:

• Recency: Data updates daily, not monthly.
• Accuracy: Pulled directly from state records, eliminating middleman distortion.
• Coverage: Includes LLCs, corporations, and partnerships across all U.S. states.
• Reliability: Consistent refresh cycles ensure confidence in outreach.

You’re not guessing, you’re acting on verified intent data.

Turning Real-Time Data into Growth: Four Steps Brokers Can Take

Pick Your Market

Identify the regions and industries where your producers are strongest. With Livesight, you can filter business formation data by geography or sector, aligning leads with your team’s expertise and targeting areas that have seen large growth in business formations.

Example: A brokerage with a strong construction practice can zero in on new contractors and trade companies filing in nearby counties.

Reach Out First

Speed matters. Equip your producers with Livesight data so they can contact new business owners within days of formation.

A timely, consultative outreach could sound like:

“I noticed you just registered your new construction company—congratulations. I work with several similar businesses in this area and can help you get the right coverage in place before your first project.”

Early outreach like this is not just about selling insurance—it’s about offering reassurance and clarity during an uncertain stage of entrepreneurship.

Measure Results

Track the ROI of Livesight-sourced leads versus your traditional prospect lists. Measure key outcomes such as:

• Meetings booked
• Policies bound
• Average premium per client
• Renewal rates

Brokers that adopt real-time formation data often report shorter sales cycles and higher close rates because they’re connecting with founders at the exact moment of need.

Expand Your Reach

Once you’ve validated performance, scale your Livesight usage across new states or additional lines of business.

Start with a pilot market, prove ROI, then grow regionally or nationally. The scalability of Livesight’s data feed means your producers always have a steady, fresh pipeline of opportunities—no more cold lists.

Building Stronger Relationships from Day One

Founders remember the first professionals who helped them start right. When brokers position themselves as early advisors—offering education, not just quotes—they become trusted partners in the business’s growth story.

This early relationship often evolves into:

• Cross-sold policies: From general liability to commercial auto and cyber coverage.
• Long-term retention: Small businesses that start with a broker are more likely to stay.
• Referrals: Entrepreneurs often share recommendations within local or online communities.

By focusing on formation-stage outreach, you’re not only improving lead flow—you’re strengthening your brokerage’s long-term client base.

Every day, thousands of new businesses open their doors. The question isn’t whether they’ll need insurance—it’s whether your brokerage will be the one they turn to first.

With Livesight, brokers gain a direct line to high-intent, newly formed businesses, supported by clean, official data refreshed daily. It’s not just about having more leads—it’s about having the right leads at the right time.

Ready to See What’s Forming in Your Market?

Get a personalized snapshot of how many new businesses launched in your state this week.
→ Request your state-level report from Livesight today.

Frequently Asked Questions

Can I target specific states or industries?

Yes. Livesight allows you to customize your feed by state, region, or industry, helping producers focus on the markets where they perform best.

How often is the data updated?

Data from Secretary of State filings is refreshed regularly—often daily—ensuring your leads are as current and accurate as possible.

What types of businesses are included?

Livesight includes LLCs, corporations, and partnerships across all 50 states, covering sectors like retail, professional services, construction, and more.

How accurate is the contact information?

Because Livesight sources directly from official records, the data reflects real, verified filings, minimizing duplicates or inactive entities.

How quickly can I start using Livesight?

Getting started is simple. Request a demo, select your preferred coverage areas, and begin receiving real-time alerts your producers can act on immediately.